[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3533 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 3533

    To amend the Internal Revenue Code of 1986 to provide that net 
operating losses shall not be reduced in connection with a discharge of 
indebtedness in certain chapter 11 bankruptcy cases involving asbestos-
                            related claims.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 28, 2005

   Mr. Camp introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to provide that net 
operating losses shall not be reduced in connection with a discharge of 
indebtedness in certain chapter 11 bankruptcy cases involving asbestos-
                            related claims.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. ELECTION NOT TO REDUCE NOLS IN CONNECTION WITH DISCHARGES OF 
              INDEBTEDNESS IN CERTAIN ASBESTOS-RELATED BANKRUPTCY 
              CASES.

    (a) In General.--Subsection (b) of section 108 of the Internal 
Revenue Code of 1986 (relating to reduction of tax attributes) is 
amended by adding at the end the following new paragraph:
            ``(6) Election not to reduce nols in certain asbestos-
        related title 11 cases.--
                    ``(A) In general.--With respect to amounts excluded 
                from gross income under subsection (a)(1)(A) by reason 
                of a discharge received in a specified chapter 11 case, 
                this subsection may, at the election of the taxpayer 
                (at such time and in such form and manner as the 
                Secretary may prescribe), be applied to such amounts 
                without regard to paragraph (2)(A) if the aggregate 
                amount of the specified asbestos-related liabilities of 
                the taxpayer exceeds $250,000,000.
                    ``(B) Special rules for affiliated groups.--If the 
                taxpayer is a member of an affiliated group (as defined 
                in section 1504) which files a consolidated return 
                under section 1501, subparagraph (A) shall be applied 
                (for purposes of determining if the aggregate amount of 
                the specified asbestos-related liabilities of the 
                taxpayer exceeds $250,000,000) by taking into account 
                the specified asbestos-related liabilities of each 
                member of such group which is a debtor in a specified 
                chapter 11 case which is jointly administered under 
                chapter 11 of title 11, United States Code, with the 
                specified chapter 11 case of the taxpayer.
                    ``(C) Specified asbestos-related liabilities.--For 
                purposes of this paragraph, the term `specified 
                asbestos-related liabilities' means the aggregate 
                amount of claims and demands against the debtor payable 
                from a trust with respect to which an injunction under 
                section 524(g) of title 11, United States Code, is in 
                effect.
                    ``(D) Specified chapter 11 case.--For purposes of 
                this paragraph, the term `specified chapter 11 case' 
                means a case commenced under chapter 11 of title 11, 
                United States Code, before July 28, 2005, and with 
                respect to which a discharge under such chapter is 
                received on or after such date.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to discharges received on or after July 28, 2005, in taxable years 
ending on or after such date.
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